Parsons Corp (PSN)

Return on assets (ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	235,053	225,781	201,277	175,346	161,149	144,372	126,496	101,550	96,664	97,506	87,293	75,700	64,072	56,710	78,010	94,607	98,541	90,652	106,806	123,766
Total assets	US$ in thousands	5,487,960	5,443,340	5,238,730	5,098,440	4,804,060	4,732,990	4,507,510	4,255,810	4,198,140	4,094,990	4,109,800	3,808,840	3,830,940	3,823,930	3,839,300	3,865,000	3,937,700	3,918,760	3,451,180	3,488,600
ROA		4.28%	4.15%	3.84%	3.44%	3.35%	3.05%	2.81%	2.39%	2.30%	2.38%	2.12%	1.99%	1.67%	1.48%	2.03%	2.45%	2.50%	2.31%	3.09%	3.55%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $235,053K ÷ $5,487,960K
= 4.28%

Parsons Corp's return on assets (ROA) has shown fluctuations over the past few years, reflecting the company's ability to generate profits from its asset base. The ROA started at 3.55% as of March 31, 2020, and gradually declined to 1.48% by September 30, 2021, indicating a weakening performance in utilizing its assets to generate earnings.

However, the trend reversed from that point onwards, with the ROA increasing steadily to reach 4.28% by December 31, 2024. This upward trajectory suggests that Parsons Corp improved its asset efficiency and profitability during this period.

Overall, the analysis of ROA indicates that Parsons Corp has managed to enhance its asset utilization and generate higher returns for its shareholders in recent years, demonstrating a positive trend in the company's financial performance.